Downtown Restaurant with Expansion
For Sale
$975,000
1207 Tower Square, Marion, IL 62959
Includes the operating Tower Square Pizza business and underlying real estate.
Property Size9,039 SF
Price / SF$107.87
Days on Market63
Property Features for 1207 Tower Square
General Information
Standard status
Active
Size
9,039 SF
Property subtype
Commercial
Zoning
Commercial
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$7,756
Building Details
Building Size
9,039 SF
Year Renovated
2019
Buildings
1
Stories
2
Listing Agency:
COLDWELL BANKER J D THOMPSON
(618) 889-1486
Listed By:
Presley Barnett
(618) 889-1486
Source:
Shawneehillsrealestate
Added: Jun 29
Changed: Aug 29
Last Checked: Jul 21 at 10:18PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of COLDWELL BANKER J D THOMPSON
Investment Insights
Based on property information with market context.
The offering combines a restaurant property with the established Tower Square Pizza business at 1207 Tower Square in downtown Marion. The real estate and business are included together, providing an existing restaurant operation rather than a vacant commercial shell. Major property updates were completed during 2018–2019.
A second-floor area remains unfinished and can be developed for office space, additional dining, apartments, or another use. The building also includes a large basement that provides storage capacity. The property sits on the downtown Marion Square and is within the TIF district, adding a defined civic and commercial context to the asset.
A second-floor area remains unfinished and can be developed for office space, additional dining, apartments, or another use. The building also includes a large basement that provides storage capacity. The property sits on the downtown Marion Square and is within the TIF district, adding a defined civic and commercial context to the asset.
Key Highlights
- Real estate and Tower Square Pizza business included
- Major updates completed in 2018–2019
- Unfinished second floor offers office, dining, apartment, or other‑use potential
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$73,802
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
7.57%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,476,040
$1.5M
Cap Rate 7%
$1,054,314
$1.1M
Cap Rate 9%
$820,022
$820.0K
Market Conditions
NOI Build-Up for 9,039 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$117.1K $12.96/SF
− Vacancy
−$11.7K −$1.30/SF
EGI
$105.4K $11.66/SF
− OpEx
−$31.6K −$3.50/SF
NOI
$73.8K $8.16/SF
Area
Williamson County, IL
Vacancy
10.00%
Lease Rate
$12.96 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,476,040
Cap Rate 7%
$1,054,314
Cap Rate 9%
$820,022
Alternative Uses
Best Use
Specialty Retail
$1.76M
$1.54M – $2.05M
NOI $123,136 @ 7.0% cap · market cap 12.63%
Second Best
Retail
$1.05M
$922.5K – $1.23M
NOI $73,802 @ 7.0% cap · market cap 7.57%
Theoretical Best
Office A
$1.91M
$1.67M – $2.22M
NOI $133,390 @ 7.0% cap · market cap 13.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
611
Businesses Nearby
66k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 53%
Dining 47%
McDonald's
Dining
24,280 visits/mo
0.5 miles
Dollar Tree
Shops & Services
11,586 visits/mo
0.3 miles
Casey's General Store
Shops & Services
9,927 visits/mo
0.5 miles
Dollar General
Shops & Services
9,883 visits/mo
0.5 miles
Ziggi's Coffee
Dining
5,244 visits/mo
0.4 miles
Demographics for 62959, IL
27,629
Population
12,997
Households
2.1
Avg Household Size
43
Median Age
28%
College-Educated
92%
High-School Grad
143.0 sq mi
ZIP Area
193
Density / Sq Mi
$69,914
Median Household Income
$44,145
Median Earnings
$895
Median Rent
$166,200
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Includes the operating Tower Square Pizza business and underlying real estate.
Where is this conventional restaurant located?
The property is located at 1207 Tower Square Marion, IL.
What is the asking price?
The asking price for this property is $975,000.
What are key features of this property?
This property features: Real estate and Tower Square Pizza business included; Major updates completed in 2018–2019; Unfinished second floor offers office, dining, apartment, or other‑use potential
